Gov. Paul Patton

Gov. Paul Patton acknowledged in his January 22nd budget address to the Kentucky General Assembly that 2001 was a rough year. "This national recession is affecting more than just state revenue," he noted. "It's impacting the lives of thousands of Kentuckians even more dramatically." Indeed, more than 20,000 manufacturing jobs in the state have been lost in the last two years.
        Even still, the Blue Grass State came in second in the 2001 Governor's Cup competition. Kentucky is a leading state for automobile manufacturing as well as the sector's supplier base, and a number of announcements reflect that industry strength (see the Kentucky Spotlight roundtable discussion beginning on page 206). Akebono Corp., a Japanese supplier of friction materials and brake products, has begun construction of a $70 million manufacturing facility in Springfield in Washington County. The facility initially will cover 126,000 sq. ft. (11,700 sq. m.); plans call for an expansion to 190,000 sq. ft. (17,650 sq. m.).
        In other business expansion activity, Citicorp Credit Services plans to create up o 2,000 new jobs at a new, 180,000-sq.-ft. (16,700 sq. m.) facility on Citibank's 81-acre (33-ha.) campus in northern Kentucky's Boone County. And American Woodmark Corp. announced plans in October 2001 to open a 220,000-sq.-ft. (20,400-sq.-m.) facility in the Coalfields Industrial Park in Hazard. The project will generate 260 new jobs over the next three years.
        "Our challenge during the next two years is going to be to keep the commitments we've made [to funding critical programs and services] and to not lose ground in the key areas of education and economic development that are critical to Kentucky's long-term future," the governor told the lawmakers in January.

Gov. John Engler

The Wolverine State had to relinquish its four-year hold on the Governor's Cup in 2001, but it sure put up a good fight. In fact, it can still lay claim to having the most new and expanded facilities for the year, with more than 1,400 projects.
        "The fact that Michigan is the number one destination for major new business expansions for five years in a row speaks volumes about our state's long-term outlook as an economic powerhouse," says Gov. John Engler, pointing to economic diversification as the key business-expansion driver. "The statistics speak for themselves as to why Michigan is able to perform so well in this competition for the past five years. Our economy is now 94 percent as diverse as the national economy, as opposed to 80 percent as diverse in 1970. We expect diversification to continue in the years to come."
        Automotive industry investments remained strong in 2001, such as Siemens Automotive Corp.'s plan to invest $67 million in a new vehicle and application-engineering facility in Auburn Hills. The 250,000-sq.-ft. (23,200-sq.-m.) facility will generate more than 1,200 jobs.
        Just as important to Gov. Engler and other state officials is the cultivation of such key industries as life sciences (see the Life Sciences Industry Review on page 178). In 1999, Gov. Engler and the state legislature agreed to invest $1 billion over 20 years to create the Life Sciences Corridor, which is designed to attract and expand the research, development and commercialization of biotechnology applications in Michigan.
        Pfizer plans to invest $600 million to $800 million to expand its Ann Arbor Laboratories on land near the Univ. of Michigan's North Campus. "We expect to see continued growth of our Life Sciences Corridor cluster with the next round of Corridor funding expected by this summer," says Gov. Engler.
        Another of the governor's priorities involves access to high-speed broadband. "In order to be a top-tier performer in Site Selection's contest and in the minds of the business community, all areas of the state, urban and rural, must have high-speed access available," says the governor. "Legislation to support this plan is quickly moving through the legislature. We expect to make high-speed broadband access a reality for all Michigan businesses and residents in the near future."

Gov. Ronnie Musgrove

Central Mississippi is seeing a major influx of investment from auto suppliers siting projects near Nissan Motor Company's new, $930 million vehicle assembly plant in Canton. Nissan's 2.6 million-sq.-ft. (241,500-sq.-m.) plant will produce 250,000 vehicles per year, and it will employ 4,000 people -- a significant win, indeed, for the Magnolia State. The project was announced in late 2000. Among the many suppliers announcing new Mississippi plants in 2001 were Yorozu Corp., a suspension components supplier; M-TEK Inc., a maker of interior trim components; and Unipres USA, a body stampings supplier.
        Much of Mississippi's recent economic development success can be attributed to the Advantage Mississippi Initiative, which is a package of programs, initiatives and incentives passed in 2000 that is designed to help the Mississippi Development Authority attract industry.
        "It is one of the most aggressive, creative and forward-thinking economic development packages in the country," says Gov. Ronnie Musgrove. "We are able to tailor it to fit the needs of both potential and existing businesses around the state. Even though the country is facing difficult times, we are not going to slow down our efforts to grow Mississippi."
        Looking to the year ahead, Gov. Musgrove is directing his economic development team to focus on recruiting new businesses and expanding existing ones while he works to improve the educational infrastructure necessary for building the economy. "We are continuing to strengthen education beyond the advancement of this past year," he states. "We have a great economic development package, but it won't work if we don't have a ready, trained and capable workforce to back it up. I'm excited about the prospects for Mississippi this year."